Caveat Emptor In The Capitalism: The Case Of Stella Liebeck
The rise of capitalism and the free market system is set based on the ideological premise that people are rational actors endowed with the highest degree of freedom, dignity, and respect. Caveat emptor embodies this attitude. At the same time, caveat emptor raises important questions about whether an ideological perspective of humans as free individuals with dignity can be applied without any restriction, especially when the humans involved include the elderly and young children. In a fast-moving economy, caveat emptor becomes more complicated as transactions no longer involve explicit contracts, and instead, an implied contract becomes the norm.
Caveat emptor is a Latin phrase that means that “Let the buyers beware” (Brusseau, 2012). In its …show more content…
Is this a good justification against a caveat emptor attitude? Yes, if one considers the fact that one in nine seniors reported being abused, neglected, or exploited, and financial exploitation is very high (NAPSA n.d.). While intending to fully respect the dignity and autonomy of people, a caveat emptor attitude might be betraying its intentions by allowing seniors to be abused financially and emotionally, thus robbing them of their dignity and …show more content…
An implied contract is a basic (unmentioned) agreement between the seller and consumer based on three principles. The first is that neither the buyer nor the seller is forced into the transaction (Brusseau, 2012). McDonald's is not forcing Liebeck to buy their coffee at gunpoint. Neither is Liebeck pressuring McDonald's to sell her their coffee. The second principle, on the other hand, requires that both the seller and buyer must have a reasonable amount of information about the product (Brusseau, 2012). On this principle, McDonald's made the mistake of not mentioning that the coffee cup could splash out when it is opened and that it is hot enough to cause third-degree burns (Brusseau, 2012). Liebeck failed to obtain complete information regarding the consumption of the product that she purchased (Brusseau, 2012). The last principle involves honesty (Brusseau, 2012). McDonald's cannot provide a chocolate milkshake to Liebeck while advertising coffee on their menu. Meanwhile, Liebeck has to pay the full price as specified by
Caveat emptor is a Latin phrase that means that “Let the buyers beware” (Brusseau, 2012). In its …show more content…
Is this a good justification against a caveat emptor attitude? Yes, if one considers the fact that one in nine seniors reported being abused, neglected, or exploited, and financial exploitation is very high (NAPSA n.d.). While intending to fully respect the dignity and autonomy of people, a caveat emptor attitude might be betraying its intentions by allowing seniors to be abused financially and emotionally, thus robbing them of their dignity and …show more content…
An implied contract is a basic (unmentioned) agreement between the seller and consumer based on three principles. The first is that neither the buyer nor the seller is forced into the transaction (Brusseau, 2012). McDonald's is not forcing Liebeck to buy their coffee at gunpoint. Neither is Liebeck pressuring McDonald's to sell her their coffee. The second principle, on the other hand, requires that both the seller and buyer must have a reasonable amount of information about the product (Brusseau, 2012). On this principle, McDonald's made the mistake of not mentioning that the coffee cup could splash out when it is opened and that it is hot enough to cause third-degree burns (Brusseau, 2012). Liebeck failed to obtain complete information regarding the consumption of the product that she purchased (Brusseau, 2012). The last principle involves honesty (Brusseau, 2012). McDonald's cannot provide a chocolate milkshake to Liebeck while advertising coffee on their menu. Meanwhile, Liebeck has to pay the full price as specified by